CSSF Enforcement Actions

What Changed

The regulatory landscape has evolved significantly with the introduction of new sustainability reporting requirements: ESRS Implementation (First Year): 2024 marked the first full reporting year under the European Sustainability Reporting Standards (ESRS), with the CSSF conducting a fact-finding exercise to assess reporting quality. The CSSF noted an overall increase in reporting quality with better-structured reports and more relevant disclosures, though key improvement areas remain in compreh

What You Need To Do

• *Financial Information (IFRS)
• *Enhanced Note Disclosures
• *Cash Flow Statement Presentation
• *Segment Reporting Completeness
• *Going Concern Assessment

Key Dates

References

• [1] cssf.lu
• [2] bsp.lu
• [3] cssf.lu
• [4] lexgo.be
• [5] cssf.lu
• [6] lsfi.lu
• [7] cssf.lu
• [8] cssf.lu

What Changed

This is not a regulatory change or new requirement but an enforcement of existing obligations under the Transparency Law of 11 January 2008 (as amended), specifically Article 4, which mandates issuers to publish half-yearly financial reports, including effective dissemination, storage on the Officially Appointed Mechanism (OAM), and filing with the CSSF. No new rules are introduced; the sanction reinforces the unchanged deadlines and processes for periodic information publication, with the CSSF

What You Need To Do

• All affected parties
• BigRep SE specifically
• wide actions are mandated beyond general adherence, but proactive audits are advisable given CSSF's supervisory focus

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] cssf.lu
• [6] opensanctions.org
• [7] cssf.lu
• [8] complianceandmarketsadvisors.com

What Changed

No new regulatory changes or requirements are introduced in this publication, as it is an enforcement notice rather than a circular or guideline. It serves as a disclosure of an ongoing or concluded enforcement case, aligning with CSSF's practice of publishing sanction details to deter non-compliance and inform the market, without altering existing rules. #

What You Need To Do

• For the named population
• For all supervised firms
• Update internal policies, train staff on enforcement precedents, and ensure robust reporting under Circular CSSF 19/726 or Transparency Law obligations

References

• [1] cssf.lu
• [2] aoshearman.com
• [3] pwc.lu
• [4] bakermckenzie.com
• [5] cssf.lu
• [6] cssf.lu
• [7] elvingerhoss.lu
• [8] ey.com

What Changed

This is not a regulatory change but an enforcement precedent under existing rules: non-compliance with Article 5(1) of the AML/CFT Law, which mandates annual submission of a financial crime questionnaire ("Questionnaire") to the CSSF. The fine was calculated per Articles 8-4(1), 8-4(2)(f), and 8-4(3)(a), considering circumstances under Article 8-5(1). Publication followed Article 8-6(1) after a proportionality assessment, confirming no market stability risks. No new requirements were introduced;

What You Need To Do

• Immediately review internal processes for annual Questionnaire submission, ensuring calendar invites and automated reminders for the 4 April deadline (covering prior year-end data)
• Conduct a gap analysis on AML/CFT cooperation obligations under Article 5(1), including response protocols to CSSF reminders or queries
• Update compliance calendars and train staff on escalation procedures; document all submissions with proof (e
• If late, proactively submit overdue items and request meetings if needed, as non-response forfeits mitigation opportunities

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] seqlense.com
• [5] bsp.lu
• [6] cvc.com
• [7] gouvernement.lu
• [8] caceis.com

What Changed

This is not a regulatory change but rather an enforcement action clarifying existing obligations: Mandatory Annual Questionnaire Requirement: All professionals supervised, authorized, or registered by the CSSF must submit an annual questionnaire on financial crime by April 4 each year, covering the preceding calendar year. Cooperation Obligation: Article 5(1) of the amended Law of 12 November 2004 on AML/CFT establishes a non-negotiable duty to cooperate with the CSSF, which includes timely su

What You Need To Do

• regulated entities must
• *Establish Calendar Controls
• *Designate Responsible Parties
• *Prepare Documentation
• *Monitor Communications

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] seqlense.com
• [4] cssf.lu
• [5] cssf.lu
• [6] blogs.duanemorris.com
• [7] cssf.lu
• [8] cssf.lu

What Changed

This is not a regulatory change or new requirement but an enforcement precedent under existing rules: non-compliance with the annual financial crime questionnaire submission, mandated by Article 5(1) of the AML/CFT Law, triggers fines per Articles 8-4(1), 8-4(2)(f), and 8-4(3)(a). The CSSF considered all relevant circumstances under Article 8-5(1) to set the €10,000 fine amount and published the sanction nominatively after proportionality assessment per Article 8-6(1), confirming no market stabi

What You Need To Do

• Ensure timely submission of annual financial crime questionnaires by 4 April each year (for prior calendar year data); implement calendar reminders and escalation processes for CSSF requests
• Respond promptly to CSSF reminders or queries on AML/CFT compliance to avoid escalation to fines; document any delays with justification evidence
• No retroactive actions needed for this case, but conduct gap analysis on reporting workflows to prevent similar breaches

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] regulatoryandcompliance.com
• [6] cssf.lu
• [7] sec.gov
• [8] pinsentmasons.com

What Changed

This is not a regulatory change but rather an enforcement action clarifying existing obligations. However, it reinforces critical compliance requirements: Mandatory Annual Questionnaire Submission: All CSSF-supervised professionals, including AIFMs, must submit an annual questionnaire on financial crime by the specified deadline (in this case, 4 April 2025 for the year ending 31 December 2024). Cooperation Obligation: Article 5(1) of the amended Law of 12 November 2004 on the fight against mon

What You Need To Do

• *Establish Calendar Controls
• *Designate Responsible Parties
• *Monitor CSSF Communications
• *Document Submission
• *Escalate Non-Compliance Immediately

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] opensanctions.org
• [5] boldergroup.com
• [6] bsp.lu
• [7] efama.org
• [8] pwc.lu

What Changed

This is not a regulatory change but rather an enforcement action clarifying existing obligations: Mandatory Annual Questionnaire Requirement: All CSSF-supervised professionals must submit an annual questionnaire on financial crime covering the preceding calendar year. Cooperation Obligation: Article 5(1) of the amended Law of 12 November 2004 on AML/CFT imposes a non-negotiable duty to cooperate with CSSF supervisory requests. Enforcement Escalation: The CSSF will issue reminders before imposin

What You Need To Do

• regulated entities must
• *Identify Reporting Obligations
• *Calendar Management
• *Documentation
• *Escalation Protocol

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] opensanctions.org
• [5] cliffordchance.com
• [6] elvingerhoss.lu
• [7] imf.org

What Changed

This is not a regulatory change but rather an enforcement action that clarifies existing obligations: Mandatory Annual Reporting: All CSSF-supervised professionals must submit an annual questionnaire on financial crime by 4 April each year, covering the preceding calendar year. Cooperation Obligation: Article 5(1) of the amended Law of 12 November 2004 on AML/CFT establishes a non-negotiable duty to cooperate with the CSSF, including timely submission of requested documentation. Enforcement Esc

What You Need To Do

• *Establish Reporting Calendars
• *Designate Responsible Personnel
• *Respond to Regulatory Requests
• *Document Justifications
• *Monitor Supervisory Communications

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] opensanctions.org
• [6] sorainen.com
• [7] ubp.com
• [8] adaptation-fund.org

What Changed

This is not a regulatory change or new requirement but an enforcement of existing obligations under the amended Law of 12 November 2004 on the fight against money laundering and terrorist financing (AML/CFT Law). Specifically, it reaffirms the mandatory annual submission of the CSSF's financial crime questionnaire ("Questionnaire") by supervised professionals, including AIFMs under Article 3(2) of the Law of 12 July 2013 on AIFMs, as part of the cooperation duty in Article 5(1). The fine was cal

What You Need To Do

• Immediately verify submission status of the 2024 Questionnaire (or any outstanding); if overdue, submit promptly with justification to mitigate further escalation
• Implement automated calendar alerts and internal workflows for all CSSF reporting deadlines, including annual AML/CFT Questionnaire
• Conduct a compliance gap analysis on cooperation obligations under Article 5(1) AML/CFT Law, documenting reminder responses and evidence retention
• Train senior managers and compliance teams on supervisory interactions, including rights to request in-person meetings before fines
• Review governance for timely escalation of CSSF reminders to decision-makers

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] fi.se
• [6] cssf.lu
• [7] africagrowthfund.org
• [8] funds-europe.com

What Changed

This is not a regulatory change or new requirement but an enforcement of existing obligations under the amended AML/CFT Law: Annual Questionnaire Submission: Supervised professionals, including AIFMs under Article 3(2) of the Law of 12 July 2013 on AIFMs, must submit an annual financial crime questionnaire ("Questionnaire") to CSSF as part of the cooperation duty in Article 5(1). Fine Provisions: Fines are imposed per Articles 8-4(1), 8-4(2)(f), and 8-4(3)(a), with amounts determined by relevant

What You Need To Do

• Immediate Review
• Remediation if Late
• Process Enhancements

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] blogs.duanemorris.com
• [6] opensanctions.org
• [7] cssf.lu
• [8] misp-project.org

What Changed

This is not a regulatory change or new requirement but an enforcement of existing obligations under the amended AML/CFT Law: Article 5(1) mandates supervised professionals, including AIFMs under Article 3(2) of the Law of 12 July 2013 on AIFMs, to cooperate fully with CSSF, including submitting the annual financial crime questionnaire ("Questionnaire"). Breach occurred due to non-submission of the 2024 year-end Questionnaire, with fine determined per Articles 8-4(1), 8-4(2)(f), 8-4(3)(a), and 8-

What You Need To Do

• Review and confirm timely submission of all pending or future CSSF financial crime questionnaires; establish automated calendar reminders for annual deadlines (e
• Implement escalation protocols for CSSF reminders, ensuring immediate response and submission within days, not weeks
• Conduct internal audit of AML/CFT cooperation obligations, documenting justifications for any delays and preparing evidence for potential CSSF hearings or meetings
• Update compliance policies to prioritize Article 5(1) duties, including training for responsible persons on fine risks under Article 8-4

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] blogs.duanemorris.com
• [6] cssf.lu
• [7] cssf.lu
• [8] cssf.lu

What Changed

This is an enforcement action, not a regulatory change; it enforces existing requirements under Article 51(1) (1st and 7th indents) and Article 51(2) (1st sub-paragraph, 3rd indent) of the amended Law of 12 July 2013 on AIFMs (AIFM Law), and related provisions like Article 92(1) of Commission Delegated Regulation (EU) No 231/2013 (CDR 231/2013). Key breaches include: failure to properly assess risks tied to AIFs' strategies and AIFMs' organization for oversight processes; lack of processes to ve

What You Need To Do

• related entities) must
• Conduct immediate gap analyses on risk assessment processes for AIF strategies and AIFM organization per Article 92(1) CDR 231/2013
• Implement robust verification processes for AIFM compliance with asset delegation rules
• Ensure availability of key documentation and evidence of controls for the depositary function, addressing pre-2022 gaps if applicable
• Develop and test oversight processes, leveraging self-identified improvements and action plans as mitigating factors, as JTC did prior to inspection

Key Dates

References

• [1] cssf.lu
• [2] cssf.lu
• [3] cssf.lu
• [4] cssf.lu
• [5] media.permira.com

What Changed

Institutions must develop, implement, and maintain up-to-date policies, procedures, and controls for identifying, investigating, and applying restrictive measures without delay, including risk management for violations and circumvention. Management body responsibilities expanded: approve sanctions compliance strategy, oversee implementation, conduct at least annual assessments of exposure and controls, ensure remedial actions, and report deficiencies. Screening and monitoring requirements: Maint

What You Need To Do

• Conduct annual exposure assessments to sanctions risks and circumvention; update policies accordingly
• Appoint senior management/board-level responsibility for approving and overseeing sanctions strategy, including annual reviews and deficiency reporting
• Implement reliable screening systems for customers, transactions, and lists; define screenable datasets; test systems regularly for effectiveness (e
• Provide documented training to relevant staff on sanctions, institutional exposure, and internal processes
• Establish processes for immediate action on matches: suspend transfers, freeze assets, report to Ministry of Finance/CSSF/FIU without delay; maintain whitelists only under strict conditions

References

• [1] cssf.lu
• [2] cssf.lu
• [3] stradalex.lu
• [4] cliffordchance.com
• [5] cssf.lu
• [6] elvingerhoss.lu
• [7] mondaq.com
• [8] forbes.lu